Kāinga Whenua Loans for individuals
Kāinga Ora and Kiwibank are working together to help Māori to achieve home ownership on their multiple-owned land through the Kāinga Whenua loan scheme.
If you have a right to live on multiple-owned Māori land (can access a licence to occupy), a Kāinga Whenua loan for individuals allows you to build, purchase or relocate a house on that land. The loan can also be used for repairs and maintenance for an existing house on multiple-owned land.
Kiwibank will approve and provide the loan, and you will need to meet their standard lending criteria as well as the Kāinga Whenua criteria. Kāinga Ora will underwrite the loan for Kiwibank. A Kāinga Whenua loan is secured only against the house, not against the house and land as with most home loans.
With a Kāinga Whenua Loan for individuals, Kiwibank can lend you up to $500,000 for the construction or purchase price of the house, subject to certain conditions. These conditions include your licence to occupy the land, a valuation from a registered valuer and a satisfactory building contract.
No deposit is required for a loan below $200,000, but a deposit requirement of 15% for every dollar borrowed above $200,000 will apply. For example, a $400,000 loan would require a deposit of $30,000.
Kāinga Whenua loans are only available to those people that have no other access to finance to build, re-locate to or buy on their multiple-owned Māori land.
Am I eligible for a Kāinga Whenua loan?
To be eligible for a Kāinga Whenua loan for individuals, you need to meet all of the following requirements:
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the land needs to be Māori land that can’t be mortgaged (including land received by iwi and hapu as part of a Treaty settlement) and that is either owned by multiple beneficial owners or the land ownership is vested in the trustees of a trust or incorporation created under Te Ture Whenua Māori Act 1993
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can access a licence to occupy the land you wish to build on
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at least one borrower needs to live full-time in the house (i.e. it is not to rent or for use as a holiday home)
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you need to provide satisfactory proof of income to Kiwibank
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you have a good credit history that is acceptable to Kiwibank.
What can I build/relocate with a Kāinga Whenua loan?
Under a Kāinga Whenua loan there are certain requirements of the house you are planning to build, purchase or relocate to the land.
The requirements of a Kāinga Whenua loan are that the house needs to be:
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built on piles
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one storey of at least 50 square metres
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have reasonable road access
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be located on the mainland of the North or South Islands.
If you have any question about the Kāinga Whenua Loan Scheme call us between 8am and 5pm on: 0508 WELCOME (0508 935 266).
If you can meet all of the eligibility criteria, there are 11 steps you will need to complete.
Note this may end up being a long process due to the complexities involved in securing a licence to occupy multiple-owned Māori land.
Step 1. Decide to live on your multiple-owned Māori land
Consider the benefits, risks, and costs of home ownership in a multiple-owned Māori land situation.
Step 2. Apply for a Kāinga Whenua pre-approval
Kiwibank can assess your eligibility for a Kāinga Whenua loan and advise how much money you could borrow.
Step 3. Seek support from other owners of the land block
To qualify for a Kāinga Whenua loan will need the support of the other owners or trustees before you invest time and money. Once the loan is approved, the other landowners/trustees will need to sign the Kāinga Whenua (Land Tenure and Security Interest) Agreement (see Step 7).
Step 4. Design your home
You need to design your home bearing in mind the requirements of a Kāinga Whenua loan (see ‘What can I build/relocate with a Kāinga Whenua loan?’ above).
Step 5. Find a builder and produce a budget and plan
Your budget will need to meet Kiwibank’s lending criteria. You must also obtain all the council consents you need to comply with local bylaws.
Step 6. Get loan approval from Kiwibank
If your application fits with the Kāinga Whenua eligibility criteria, and Kiwibank’s lending criteria, Kiwibank will approve the loan.
Step 7. Sign the Kāinga Whenua (Land Tenure and Security Interest) Agreement
The Kāinga Whenua (Land Tenure and Security Interest) Agreement is made up of the licence to occupy part 3 page 9 (including a site licence) and a deed of mortgage. It needs to be signed by you, the landowners and Kāinga Ora. Note: this document is for reference and is only to be completed by Kāinga Ora – Home and Communities once we have received the final loan documents from Kiwibank. It will then be sent to your Solicitors to obtain the signatures of all parties involved.
Step 8. Register with the Māori Land Court
The Māori Land Court need to register your licence to occupy.
Step 9. Building starts
Building of new house, renovation or relocation of existing house starts according to the design, plan, and budget you submitted as part of your application.
Step 10. Progressive draw-downs
Timings and the finer details for progressive draw-downs will be unique to every Kāinga Whenua loan.
Step 11: Building complete
Once the building is complete you are now able to move in. Congratulations, you now have your own whare on your multiple-owned Māori land.
We’re here to help
Building on multiple-owned Māori land can be a long and complicated process. Because of this, Kāinga Ora is here to support you through the process.
To find out if you are eligible for a Kāinga Whenua loan, call Kiwibank on 0800 272 278.
Page updated: 19 May 2022